Asian session – Majors hover around NY closing levels
It was another quiet session in Asia, with majors moving in a torturous sideways fashion around its NY closing levels. EUR/USD made a high at 1.3724 but lack of follow through led the pair to retreat towards 1.3667. AUD/USD pared Friday's gains on profit taking, ending at 1.0115.
Regional bourses -0.5% on average. Oil rose almost 1% on increased tensions in Libya, where hundreds were feared dead. Angela Merkel’s CDU had a rout on Hamburg state elections. Two Irish banks were to blame for the last week's spike in ECB emergency borrowing. UK house prices were up 3.1% MoM. Japanese PM continued to lose popularity according to the latest surveys.
European session – Commodities rise on concerns
EUR/USD settled at 1.3675 by session end, effectively unchanged on the day. We did rally to 1.3700 but lack of momentum undermined any hopes to witness a break-up. GBP/USD tailed off at 1.6220, slightly lower. The rest of pairs were virtually unchanged.
Gold skyrocketed to $1,406 while silver resumed uptrend to a new 31-yr high at $33.88. The Loonie was substantially higher as Oil went ballistic, rising more than 6% on Middle East social unrest.
Euro zone February manufacturing PMI 59.0, up from 57.3 in January. Ifo February German business climate index 111.2, better than median forecast 110.3.